What is Trade name?
A trade name is the official name under which a business operates and is recognized in the marketplace. In Switzerland, a trade name can differ from the legal name of the business, particularly for sole proprietorships or small businesses, and is governed by the Swiss Code of Obligations (CO) and regulations on commercial registration.
Key Features of a Trade Name in Switzerland
- Uniqueness and Identification
A trade name must be unique within the industry and region to avoid confusion with other businesses. It serves as a distinguishing feature, representing the brand and its activities in the market. - Registration Requirements
- For businesses required to register in the Swiss Commercial Register (e.g., sole proprietorships with turnover exceeding CHF 100,000, partnerships, and corporations), the trade name is included as part of the registration process.
- Trade names for corporations (AG) and limited liability companies (GmbH) must also indicate the legal structure (e.g., “AG” or “GmbH”).
- Usage and Protection
Once registered, the trade name is legally protected, allowing the owner exclusive rights to use it within Switzerland. This protection helps prevent misuse or infringement by other businesses.
Importance of a Trade Name
A trade name is an essential aspect of a business’s identity, shaping how it is perceived by customers, partners, and stakeholders. In Switzerland, where trust and professionalism are highly valued, a well-chosen and protected trade name enhances brand reputation and supports long-term success in the competitive business environment.